There is no doubt that we could use a little cheery news about the economy for once. Aren’t you tired of all the doom and gloom that has been surrounding not only our economy, but most of the worlds? There is no doubt that the last five years have been fairly painful for all the major economies all over the globe. It appeared that only China was able to move forward, and yet recently, even they have reported a sharp reduction in exports, which is still a major component of their economy. Granted, with over 1 billion people and a rising standard of living, they have an important local sector that they can rely on for some growth. But if their manufacturers are not exporting as much, that means that the average household income is not going to move forward significantly, which will reduce spending internally.
The United States certainly got hit over the head with the collapse of the housing market in late 2007. It truly was a bloodbath, and many banks nearly went under. Many were saved by massive infusions of cash provided by the Obama administration, which arguably saved the day for the entire economy. The problems in Europe have been well-documented with Spain, Italy and Greece grabbing most of the headlines. Now it appears that even Germany and France, the last bastions of economic growth, are also sliding into a mild recession which signals more troubles ahead.
The State of the UK Economy
While the last few years have been fairly turbulent, it appears that this year UK can expect a slight increase in their economy. Given the fact that an important part of the overall economy is based on exports, troubles abroad mean challenging times for local manufacturers. Unemployment is still a cause for concern, as it is still far above where it was during the last boom, almost a decade ago. This reduces spending, which naturally is always important for any country’s economy. If only there was a sign that showed some improvement in this sector.
And Now For the Good News
Fortunately there is some. Most probably aided by a reduction in mortgage rates, recent reports indicate that there has been a significant increase in first-time home buyers The numbers are particularly encouraging, given that this increase is greater than at any time during the last economic contraction. In fact, the number of first-time home buyers is greater than at any time since 2007, when the last housing boom market had its swan song. More first-time home buyers means more profits for banks, as well as additional jobs for people involved in the housing industry, including contractors, home decorators and suppliers of many household items such as furniture, electronics, and kitchen equipment. Finally, something we can all smile about. Hopefully, it is the beginning of a new trend which will help our economy improved overall.
Chris Harlepp is a US-based lifestyle writer covering some of the latest trends in modern consumer habits and tendencies, such as sell your house fast to take advantage of low house prices. He writes on a freelance basis for many of the major lifestyle blogs.